By Justin Dill, Jacob Lindamood, David Stauffer, Mihai Prisacariu, and Jamie Zikos

Becton Dickinson

● BD has been a player in the MedTech industry since it was founded in 1897, originally selling needles and syringes

● Today the company produces 80% of syringes globally, but this is only a small part of their product base

● 3 segments○ BD Medical○ BD Diagnostics○ BD Biosciences

Company Overview

Becton Dickinson

● BD was the 12th largest MedTech company in 2014

● Global Presence○ Locations on every major continent○ Over 30 subsidiaries, in the U.S. and

abroad● BDX had a share price of $152.67 as of

December 1, 2015● Heavy focus on charitable donation and

sustainability goals

Company Overview

Retractable Technologies Lawsuits

● 385,000 needle-sticks a year

○ 80% of market

● Retractable Technologies

○ Superior product

■ VanishPoint

Retractable Technologies Lawsuits

2002 Lawsuit

● Decided not to licenses VanishPoint

● Retractable Technologies was pushed out of market

○ Group Purchasing Organizations (GPOs)

● Sherman Antitrust Act

○ Settled for $100 million

2002 Lawsuit

2007 Lawsuit

● Federal safety laws○ Not up to the market standard○ Sharpness and accuracy

● Public perception of VanishPoint

● Forced to pay $340 million

BD is dedicated to producing saferand more reliable products

2007 Lawsuit

Strengthen Medication

Management Improve Quality of Patient Care

Opportunities in New &

Developed Markets

Meaningful Value for

Shareholders

Why the $12.2B Merge?Why the $12.2B Merger?

Strengthen Medication Management

● $20B Market

● Drug preparation in the

pharmacy

● Dispensing on the hospital floor

● Administration to the patient

● Subsequent monitoring

Strengthen Medication Management

Improve Quality of Patient Care

● Addressing hospital’s unmet needs

● Increase efficiencies

● Reduce medication administration

errors

● Improve patient and healthcare

worker safety

Improve Quality of Patient Care

Opportunities in Developed & Emerging MarketsOpportunities in New & Developed Markets

CareFusion Lawsuits and Recalls

Kickbacks

● Dr. Charles Denham received $11.6 million to promote ChloraPrep.

● CareFusion agreed to a settlement in the amount of $40.1 million ○ Kickbacks○ Marketing the product for unapproved uses

CareFusion Lawsuits and Recalls

Class I Recalls

● Avea Ventilator ○ Recalled in May of 2015

● Alaris Syringe Pump○ Recalled in June of 2015 ○ Malfunction in software and hardware in regards to stopping/starting fluid

delivery

CareFusion Lawsuits and Recalls CareFusion Lawsuits and Recalls

Who is CareFusion? Clash of Cultures

● Old

● Slow-moving

● Safe

● Young

● Agile

● Entrepreneurial

Recommendation 1

Becton Dickinson should fully integrate CareFusion into their

operations under the BD brand

● Transform the merger into an acquisition

● Expedite on the safety improvement process

● Streamlining through this integration

Recommendation 1

Recommendation 1

● Cambridge Trust Company

○ Investment company

○ Sustainable & Responsible Investing ( SRI )

○ First hand research

● Strong financial position

Recommendation 1

Recommendation 2

Create promotional campaign focusing on improvements in Becton

Dickinson’s safety and reliability of its products through investments in

regulation training programs.

● Targeted to the general population

● Promote continuous improvement

● Press releases & traditional ads

Recommendation 2

Recommendation 2

● Press releases

○ Explaining the details of the improvements

○ Business & Healthcare newspapers

● Advertising campaign

○ Portray safety & trust to consumers

○ Television commercial & print ads

Recommendation 2

Implementing both recommendations will address the safety, reliability and trust problems created by the merger with

CareFusion.

Implementation

Thank you!

Q & A Session